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Laws of the Republic of Korea |
ENFORCEMENT DECREE OF THE SECIALACT ON ENTERPRISE CITY DEVELOPMENT
[Enforcement Date: May 29, 2009] [Presidential Decree No. 21515, May 29, 2009, Amendment of Other Laws and Regulations]
Ministry of Land, Transport and Maritime Affairs (Multi-functional City Policy Division) Tel.: 02-2110-6187
Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Special Act on Enterprise City Development and matters necessary to implement the Act. Article 2 (Proposal to Designate a Enterprise City Development Area) (1) The term "reasons as prescribed by Presidential Decree" in the proviso of other portion than each subparagraph of Article 4 (1) of the Special Act on Enterprise City Development (hereinafter referred to as the "Act") refers to the reasons falling under each of the following subparagraphs:
1. In the event that 6 months have elapsed after the commencement of the consultation for joint proposal with the mayor of City and the head of Gun
2. In the event that the consultation between the mayor of City and the head of Gun is difficult where the project area extends over two or more City/Gun
3. In the event that there is a request for joint proposal from the Do governor when there is reason for the difficulty in the joint proposal with the mayor of City and the head of Gun
(2) The term "other data related to feasibility study prescribed by Presidential Decree" in
Item (e) of Subparagraph 6 of Article
4 (2) of the Act refers to the data falling under
each of the following subparagraphs.
1. Data for each of the following items concerning the financing plan by year:
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(a) Self fund-raising plan
(b) Financing plan for loan (including the method and related expenses)
2. Date concerning the land purchase cost, site development cost, etc. (including the basis
of calculation)
3. Data concerning supply of the developed land and plan for retrieval of the land cost
(including the time of the supply and the
estimated supply price land by use)
4. Other data necessary for the feasibility study prescribed by Ordinance of the Ministry
of Land, Transport and Maritime Affairs
(3) Detailed matters under the provisions of Item (a) through (c) of subparagraph 7 of
Article 4 (2) of the Act and the matters
to be contained in the memorandum of
agreement under the provision of Item (d) of the same subparagraph shall be as the
appended
Table 1.
(4) The term "other matter matters as prescribed by Presidential Decree" in subparagraph
9 of Article 4 (2) of the Act refers to
the matters falling under each of the following
subparagraphs. 1. Matters concerning the improvement of wide-area traffic system in the vicinity of the
enterprise city development area (hereinafter
referred to as the "development area")
2. A location map drawn with a scale of 1 to 25,000
3. A topographical map with a scale of 1 to 5,000 which includes the boundary of the
development area and the reason for the demarcation
4. Other necessary data prescribed by Ordinance of the Ministry of Land, Transport and
Maritime Affairs for the survey for the designation
of the development area
Article 3 (Minor Alteration of the Designation of the Development Area)
"Alteration of minor matters prescribed
by Presidential Decree" in the latter part of
Article 5 (1) and the proviso of Article 5 (2) of the Act refers to the case falling
under any
of the following subparagraphs. Provided, That in the case of subparagraph 2, and if the
area to which the development
area is expanded is the area determined and publicly
announced as the area to be cultivated under Article 14 of the Rearrangement
of
Agricultural and Fishing Villages Act, or the military base and military installation
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protection area designated under Article 4 of the Protection of Military Base and Military
Installations Act or if a farmland is
newly included in the area to which the development
area is expanded, it shall be in advance consulted with the heads of the central
administrative agencies concerned:
1. Reduction of size of the development area
2. Expansion of size of the development area within a range of 10 percent.
Article 4 (Hearing Opinions of Residents, etc.)
(1) In the event of intending to hear opinions of the residents and competent specialists,
etc. upon the designation or modification
of the development area, the Minister of
Land, Transport and Maritime Affairs (hereinafter referred to as the "Minister") shall
send the copies of the related documents to the mayor of the Metropolitan City/mayor
of City or head of Gun (excluding the head
of the Gun within the territory of the
Metropolitan City, and hereinafter referred to as the "head of City/Gun").
(2) In the event of receipt of the sent documents under the provisions of paragraph (1),
the head of City/Gun shall publicly announce
the name of the designation subject of
the development area, location and size of the area, etc. without delay. In this case,
the
head of City/Gun shall make them available for a public perusal for not less than 14
days from the date of public announcement.
(3) Any person who has any opinion on the designation of the development area may
submit his or her written opinion to the head
of City/Gun within the period of public
perusal under the provisions of paragraph (2).
(4) When there are any written opinions submitted under the provisions of paragraph (3),
the head of City/Gun shall put them together
and submit it to the Minister attached
with his examination opinion thereon and, even if there is no submitted opinion, the
head
of City/Gun shall notify it to the Minister.
Article 5 (Public Hearing)
In the event of intending to hold a public hearing under the provisions of the main
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sentence of Article 5 (2) of the Act, the Minister shall publicly announce the matters
falling under each of the following subparagraphs
in the daily newspaper whose main
distribution area is the Metropolitan City/Do where the development area belongs for at
least
once before 14 days from the scheduled date of public hearing:
1. The purpose of holding a public hearing
2. The scheduled date and time and place of public hearing
3. The summary of the designation of the development area and the enterprise city
development plan (hereinafter referred to as the
"development plan")
4. Matters concerning application for expression of opinions
5. Other necessary matters
Article 6 (Public Announcement of the Development Area, etc.)
(1) When the Minister designates a development
area, the matters to be published in the
official gazette under the provisions of Article 5 (5) of the Act are as follows:
1. Name of the development area
2. Location of the development area
3. Effective date of designation of the development area
4. Size of the area designated as the development area
5. Developer (hereinafter referred to as the "developer") of the enterprise city
development project (hereinafter referred to as
the "development project")
6. Basic direction of the development
(2) The provisions of paragraph (1) shall apply mutatis mutandis to the case of changing
the
development area.
Article 7 (Deliberation of Joint Committee)
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(1) In a case falling under any of the following subparagraphs, the Minister may request
deliberation to the joint committee which
administers the Enterprise City Committee
and the Central Urban Planning Committee jointly (hereinafter referred to as the
"Joint
Committee") under the provisions of Article 5(6) of the Act:
1. Where there exists a request from the developer or the head of local government and
the Minister deems it is urgent.
2. Where the Minister deems reasonable to undergo a joint deliberation for the execution
of the development project.
(2) The members of the Joint Committee shall be all the registered members of the
Enterprise City Committee and the Central Urban
Planning Committee, and the
chairperson shall be the chairperson of the Enterprise City Committee.
(3) Any meeting of the Committee
shall open with the attendance of a majority of the
registered members, and pass a resolution with a majority vote of the present
members.
Provided, That for the agenda concerning the approval of the basic urban planning
(including approval of the alteration)
or for the matters related to the resolution of the
urban management planning, there shall be attendance of a majority of the registered
members and a majority vote of the present members.
(4) Other matters than those prescribed by this Decree concerning the operation
of the
Joint Committee shall be determined by the Minister.
Article 8 (Requirements, etc. for the Designation of the Development Area)
(1) "Other requirements prescribed by Presidential Decree"
in subparagraph 5 of Article
6(1) of the Act refers to the case where the development project is executed in other
area than the
areas falling under the following subparagraphs:
1. Seoul metropolitan area under the provisions of the Seoul Metropolitan Area
Readjustment Planning Act
2. Area of the metropolitan city (excluding the area of Gun within the territory of the
metropolitan city)
3. The area where large-scale development projects are concentrated and its vicinity, and
6
which is publicly announced by the Minister after the deliberation of Enterprise City
Committee
(2) When designating the development area, the Minister shall take preferential account
of the area falling under any one of the
following subparagraphs:
1. Area in the City/Gun designated and announced as growth promotion area under
Article 2 (7) of the Special Act on Balanced Development
of Nation
2. Area which has significant effects on the development of national economy such as
revitalization of regional economy, promotion
of employment, etc. among the areas
which do not fall under subparagraph 1
3. Industrial complex and its hinterland in its vicinity under the provisions of
subparagraph 5 of Article 2 of the Industrial Sites
and Development Act which
includes knowledge-based industry cluster under the provisions of subparagraph 3 of
Article 2(5) of the
Industrial Cluster Development and Factory Establishment Act
(limited to industry/trade type enterprise and knowledge-based type
enterprise city
under the provisions of items (a) and (b) of subparagraph 1 of Article 2 of the Act).
Article 9 (Size Criteria
by Type of the Development Area)
The minimum land area for each type of development area under the provisions of Article
6 (2)
of the Act shall be not less than size falling under any of the following
subparagraphs. 1. Industry/trade type enterprise city : 5 million square meters. Provided, That in the
event where the enterprise city includes
an industrial complex under the provisions of
Article 2 (5) of the Industrial Sites and Development Act and it is through the
deliberation
of the Enterprise city Committee, the minimum land area shall be more
than 3.3 million square meters.
2. Knowledge-based type enterprise city : 3.3 million square meters
3. Tourism/leisure type enterprise city : 6.6 million square meters
4. Renovation cluster type enterprise city : 3.3 million square meters. Provided, That in
the case where the Regional Development
Committee requests for the designation of
such for the balanced development of the Nation and the consultation with the
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Enterprise City Committee has been gone through, the minimum land area shall be
1.65 million square meters.
Article 10 (Professional Institution for Survey and Analysis)
(1) "Professional institution prescribed by Presidential Decree" in
Article 6 (3) of the Act
includes any institution falling under each of the following subparagraphs:
1. Korea Research Institute for Human Settlements, Korea Development Institute, Korea
Institute for Industrial Economics and Trade,
Korea Rural Economic Institute and
Korea Environment Institute under the Act on the Establishment, Operation and
Fosterage of Government-invested
Research Institutions
2. Research institutions which are established and operated by the Metropolitan City
Mayor/Do governor for the regional development
3. Other institutions determined by Ordinance of the Ministry of Land, Transport and
Maritime Affairs suitable for survey and analysis
concerning the designation of the
development area
(2) When entrusting the survey and analysis to the professional institutions to examine
the necessary matters for the designation
of the development under Article 6 (3) of the
Act, in the case that it is necessary to perform such survey and analysis jointly
by more
than one institution from among the professional institutions under the provisions of
paragraph (1), the Minister may appoint
a representative institution among the
entrusted institutions and have the appointed representative institution control the
survey
and analysis performed by other institutions.
Article 11 (Percentage of Land Purchased concerning Revocation of the Designation
of
the Development Area)
"Not less than the percentage prescribed by Presidential Decree" in Article 7 (2) of the
Act refers to not less than 30 percent
of the land area to be purchased among the land
area of the relevant development area. In this case, the land owned by the project
developer or the enterprise which invested in the capital of the project developer since
the date two years before the designation
and announcement of the development is
excluded in calculating the percentage of land purchased.
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Article 12 (Estimation of the Development Gains, Etc.)
(1) "Professional institutions prescribed by Presidential Decree" in Article
8 (1) of the
Act refers to the following institutions falling under each of the following
subparagraphs. 1. Korea Research Institute for Human Settlements and Korea Development Institute
under the Act on the Establishment, Operation and
Fosterage of Government-invested
Research Institutions
2. Other research institutions specialized in feasibility study prescribed by Ordinance of
the Ministry of Land, Transport and Maritime
Affairs
(2) The provisions of Article 10 (2) shall apply mutatis mutandis to the case of entrusting
survey and analysis of feasibility
to the professional institutions under the provisions
of Article 8 (1) of the Act.
(3) "Proper development gains prescribed by Presidential Decree" in the main sentence
of Article 8 (2) of the Act means the gains
which is the product of development gains
multiplied by the proper output percentage of development gains in the attached Table
2.
(4) When the Minister estimates the development gains under the provisions of Article 8
(2) through (5) and paragraph (3) of
this Article of the Act, the development gains shall
be the amount of the gross revenues subtracted by the gross project costs,
and the items
composing the gross revenues and gross project costs shall be the composing items of
the gross revenues and gross
project costs of the development project in the attached
Table 3.
1. Changes in the development scale or percentage of direct land use, etc. which are the
bases of the gross project costs;
2. Change of land to be supplied due to the change in major land utilization plan;
3. Changes in other important matters which are the bases for the calculation of gross
project cost, and which are approved by the
Enterprise City Committee
(6) "Significant difference with development gains" in Article 8 (4) of the Act refers to
the case where
there occurs difference of more than 10 percent from the development
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gains estimated at the time of approval of the development plan under the provisions of
Article 11 of the Act.
Article 13 (Restrictions on Activities, etc.)
(1) The activities to be permitted by the head of City/Gun within the development area
under the provisions of Article 9 (1) of
the Act refer to any activities falling under each
of the following subparagraphs:
1. Altering the form and quality of land, extracting earth, stones and sands or excavating
land
2. Newly constructing, reconstructing, extending and changing the purpose of use of
buildings, or installation of structures
3. Activities such as cutting or planting trees
(2) Where granting permission under the provisions of paragraph (1), in the case
that the
project developer has already been designated under the provisions of Article 10 of the
Act, the head of City/Gun shall
hear the opinion of the said project developer.
(3) Under the provisions of Article 9 (2) of the Act, any person who has not completed
work or business shall report the project execution status of work, etc. to the relevant
head of City/Gun within 14 days from the
date of designation and public
announcement of the development area under the conditions prescribed by Ordinance
of the Ministry
of Land, Transport and Maritime Affairs.
(4) Notwithstanding the provisions of paragraph (1), any activity falling under each of the
following subparagraphs shall not be
conducted without obtaining permission from the
head of City/Gun: 1. Alteration of the form and quality of land for farming, or tentative planting of
ornamental plants (excluding tentative planting
in the farming land)
2. Temporary structures prescribed by Ordinance of the Ministry of Land, Transport and
Maritime Affairs to be used for the production
of agricultural, forestry and fishery
products
Article 14 (Standards, etc. for Designating Project Developer of the Development
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Project)
(1) The standards for designating the project developer of the development project under
Article 10 (3) of the Act shall follow
the classification of each of the following
subparagraphs:
1. In the case where any private enterprise intends to execute a development project
(including the case where two or more private
enterprises jointly execute), the credit
rating of the corporate bonds or the credit rating of the private enterprise in the most
recent year by a Korean credit rating company shall be BBB or higher, and the private
enterprise shall meet 3 or more of the following
requirements:
(a) Most recent year's capital assets shall be 100 billion won or more
(b) Most recent year's total sales shall be
500 billion won or more
(c) Most recent year's debt ration shall be less than 1.5 times that of the industry average
(d) It shall
have generated business/operation profits and normal profit and current net
profits for the most recent three years
(e) It shall have maintained minimum capital asset net profit rate of 5 % for the most
recent 3 years and cash flow of business
activities should be normal.
2. In case where a special purpose company is established to execute development
projects, the credit rating of the corporate bonds
or the credit rating of the participating
companies in the special purpose company in the most recent year by a Korean credit
rating
company or by a foreign credit rating company which is accepted by the
Minister shall be not lower than investment grade (BBB or
higher in case of Korean
credit rating company). Provided, That in case where the credit rating of the private
enterprise is below
the investment grade and the capital (including capital reserve) of
the special purpose company exceeds 10 percent of the city creation
cost under Article
10 (4) of this Act, the private enterprise can invest not more than 20 percent of its
capital into the portion
exceeding 10 percent of the city creation cost.
(2) "City creation cost prescribed by Presidential Decree" in Article 10 (4) of
the Act
means land purchase cost, site construction cost for the creation of enterprise city, and
incidental expenses such as drawing
charges, etc. as prescribed by Ordinance of
Ministry of Land, Transport and maritime Affairs.
(3) "Percentage prescribed by Presidential Decree" referred to in Article 10 (4) of the Act
11
means 20 percent. In this case, when land is invested as investment in kind, the
amount of the most recent year's publicly assessed
value of the relevant land under the
provisions of the Public Notice of Values and Appraisal of Real Estate Act shall be
recognized
as the capital for such land, which shall not exceed half of the percentage
mentioned in the front part of this sentence.
(4) "Scope prescribed by Presidential Decree" in Article 10 (4) of the Act means 50
percent of the sum of capital and invested money.
(5) "Within a range which shall be prescribed by Presidential Decree" in Article 10 (5) of
the Act refers to the case where the
sum of the percentage share of all the project
developers corresponding to each subparagraph of Article 4 (1) of the Act is less
than
70 percent.
Article 15 (Minor Alteration of the Development Plan)
"Alteration of minor matters prescribed by Presidential Decree" refers to
each case of the
following subparagraphs. In this case, when having conducted the minor matters, the
project developer shall promptly
report thereof to the Minister.
1. Increase or decrease of project cost within a range of 10 percent thereof
2. Increase or decrease of project area within a range of 10 percent thereof
3. Increase or decrease of the installation area for the equipments and facilities, which are
within the scope of the area approved,
within a range of 10 percent thereof
4. Change of project developer's address
5. Change of the representative of the project developer which is a juridical person
Article 16 (Approval, etc. for Development Plan)
(1) "Other matters as prescribed by Presidential Decree" in subparagraph 13 of Article 11
(2) of the Act means each of the matters
falling under the following subparagraphs:
1. A drawing clarifying the development plan on a topographical map or cadastral map
with a scale of not less than 1 to 5,000
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2. Collective energy supplying plan
3. Matters concerning opinions of the relevant head of City/Gun and whether or not the
opinions are reflected
(2) When announcing publicly the development plan under the provisions of the main
sentence of Article 11 (4) of the Act, the Minister
shall clarify the matters falling under
the following subparagraphs:
1. Name of the development plan
2. Name and address of the project developer, and name of its representative
3. Summary of the development
4. Development period
5. Plan for land utilization
6. Location and size of the land to be developed
7. Documents containing the detailed list of location, address, purpose, land category,
size of the land, ownership and other rights
of the land, and names and addresses of the
owner and right holders
(3) "Scale prescribed by Presidential Decree" in the proviso of the other part than each of
subparagraphs in Article 11 (5) of the
Act means 3.3 million square meters.
(4) When the fishery resources protection zone is restored under the provisions of Article
11 (6) of the Act, the Minister shall publicly announce matters falling under each of the
following subparagraphs in the official
gazette:
1. Location and size of the area
2. Specific-use area
3. Date on which the restoration to fishery resources protection zone is designated
(5) The standards for urban planning established
by the Minister under the provisions of
Article 11 (7) of the Act shall include the contents that not less than the percentage of
land prescribed by each of the following subparagraphs shall be distributed for its main
purpose for each type of enterprise city:
1. Industry/trade type enterprise city: 40 percent of the size of the land after excluding
land for public and preservation purpose
such as roads, parks, etc. (hereinafter referred
to as the "available land")
2. Knowledge-based type enterprise city: 30 percent of the available land
3. Tourism/leisure type enterprise city: 50 percent of the available land
4. Renovation cluster type enterprise city: 30 percent of the available land
Article 17 (Approval for Implementation Plan)
(1) "Alteration of minor matters prescribed by Presidential Decree" in the latter part other
than each of the subparagraphs in Article
12 (1) of the Act means alteration of each of
the matters falling under the subparagraphs of Article 15. In this case, the provisions
of the latter part other than each of the subparagraphs of Article 15 shall apply mutatis
mutandis to report on the executed matters.
(2) "Other matters prescribed by Presidential Decree" in subparagraph 7 of Article 12 (1)
of the Act refers the matters falling
under each of the following subparagraphs:
1. Written plan for reversion of and substitution for public facilities and land, etc.
2. Documents needed for the consultations with the heads of the administrative agencies
concerned.
3. Other matters prescribed by Ordinance of the Ministry of Land, Transport and
Maritime Affairs
(3) When announcing publicly the implementation plan under the provisions of Article 12
(4) of the Act, the Minister shall clarify
the matters falling under each of the following
subparagraphs: 1. Project name
2. Name and address of the project developer and name of the representative
3. Purpose and summary of the project
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4. Execution period of the project
5. Location and size of the project site
6. Matters concerning the class I district unit planning under the provisions of the
National Land Planning and Utilization.
Article 18 (Extension of the Period for Application for Adjudication of Expropriation)
(1) "Unavoidable reason prescribed by Presidential
Decree" in the proviso of Article 14
(4) refers to each case falling under any of the following subparagraphs:
1. Where the negotiated purchase is delayed for the development area whose size is not
less than twice the minimum land area for
each development type
2. Where the head of City/Gun requests as he deems there are special grounds
3. Where the acquisition of not less than 70 percent of the land to be purchased is
completed and it is deemed possible to file an
application for adjudication of
expropriation for the rest of it within a year
(2) When extending the application period for the adjudication under the provisions of
paragraph (1), the Minister shall publicly
announce thereof in the official gazette.
1. Method of implementing the plan for relocation and criteria for choosing the persons
to be relocated under the provisions of Article
78 of the Act on the Acquisition of Land,
etc. for Public Works and the Compensation Therefor
2. Time, method, target, procedures and conditions for supplying land, etc. which are
necessary for the measures for living upon
consideration of the status of original land
owning, their occupations, etc. of the residents living in the development area
3. Plans for employment and job arrangement for the residents living in the development
15
area by the occupant enterprises
4. Other matters which are considered necessary for the resettlement of the residents by
the Minister
(2) The Minister may prescribe other matters which are necessary to efficiently execute
the affairs concerning the detailed contents
to be contained in the plans for moving, etc.
under the provisions of paragraph (1) and the method of execution, etc.
(3) When formulating a plan for moving under the provisions of paragraph (1), the
project developer shall hear the opinions of the
representative of the residents and the
head of City/Gun.
(4) The basis date for measures for resettlement under the provisions of subparagraph 1
of paragraph (1) shall be the date the head
of City/Gun made a public announcement to
hear the opinions of the residents, etc. under the provisions of Article (4) 2 before
the
designation of the development area.
Article 20 (Scale of Issuance of Land Redemption Bond)
The scale of land redemption bond to be issued under the provisions of Article
15 (1) of
the Act (hereinafter referred to as the "land redemption bond") shall meet the condition
that the land to be redeemed
by such land redemption bond does not exceed 50 percent of
the land to be created by the relevant development project.
Article
21 (Guaranteeing Institution for the Land Redemption Bond)
"Financial institutions, etc. prescribed by Presidential Decree" in the
latter part of Article
15 (1) of the Act shall be the financial institutions under the provisions of subparagraph 2
of Article
2 (1) of the Banking Act (hereinafter referred to as the "financial institutions")
and insurance companies under Article 2 (5) of
the Insurance Business Act.
Article 22 (Written Plan for Issuance of Land Redemption Bond)
The written plan for issuance of land
redemption bond under the provisions of Article 15
(2) of the Act shall include the matters falling under each of the following
subparagraphs:
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1. Name of the project developer
2. Total amount of the land redemption bond to be issued
3. Annual rate of interest for the land redemption bond
4. Method of redemption for the land redemption bond
5. Purpose of the area or land to be redeemed
6. Method of calculation of the land price
7. Guaranteeing institutions and contents of guarantee
Article 23 (Public Announcement of Issuance of the Land Redemption Bond)
When issuing the land redemption bond, the project developer shall publicly announce
the name of the land redemption bond and matters
falling under each of the
subparagraphs in Article 22. Provided, That where the indemnity plan under Article 15
of the Act on the
Acquisition of Land, etc. for Public Works and the Compensation
Therefor includes such matters and the indemnity plan is publicly
announced or is
individually notified to the owners of the land, etc., such public announcement may be
omitted.
Article 24 (Conditions, etc. for Issuance of Land Redemption Bond)
(1) The interest rate for the land redemption bond shall be determined
by the project
developer upon consideration of the rates of interest of the financial institutions for the
deposit and supply and
demand conditions of the real estate at the time of issuance.
(2) The land redemption bond shall be registered type securities.
Article 25 (Subscription, etc. of the Land Redemption Bond)
Any person who intends to receive the indemnity for the land, etc.
by the land
redemption bond (hereinafter referred to as the "subscriber") shall prepare for the two
copies of written subscription
of land redemption bond which includes the matters falling
17
under each of the following subparagraphs, and submit thereof to the project developer:
1. Name of the project
2. Name and address of the subscriber (in the case of a juridical person, name of the
juridical person and name of the representative)
3. Detailed list of the land, etc. owned by the subscriber
4. Amount of land payment to be received by the subscriber
5. Amount of land redemption bond the subscriber intends to receive
Article 26 (Matters to be Entered in the Land Redemption Bond)
The land redemption bond shall contain the entries of the matters falling under each of
the following subparagraphs, and signed
and sealed by the bond issuer:
1. Matters falling under subparagraphs 1 and 3 through 6 of Article 22
2. Serial number of the land redemption bond
3. Issuance date of the land redemption bond
Article 27 (Keeping the Original Register of the Land Redemption Bond)
The issuer of
the land redemption bond shall keep the original register of the land
redemption bond which contains entries of the matters falling
under each of the
following subparagraphs (hereinafter referred to as the "original register of the land
redemption bond") in the
main office:
1. Serial number of the land redemption bond
2. Issuance date of the land redemption bond
3. Matters falling under subparagraphs 2 through 6 Article 22
4. Names and addresses of the owners of the land redemption bond
5. Acquisition date of the land redemption bond by the owners of the land, etc.
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Article 28 (Transfer, etc. of the Land Redemption Bond)
(1) When transferring the land redemption bond, the acquisitor shall request
the entries of
his name and address in the original register of the land redemption bond, and if the
entries of name and address
of the acquisitor are not made in the land redemption bond,
he does not have opposing power against the issuer or the other third
party.
(2) In the case where the land redemption bond is the object of pledge, the pledge shall
not have opposing power against
the issuer or the other third party unless the entries of
the name and address of the pledge is made in the original register of
the land
redemption bond.
(3) When the pledge is established under the provisions of paragraph (2), the issuer shall
express the intention thereof in the
land redemption bond.
Article 29 (Notice to the Owner of the Land Redemption Bond)
The notice or demand to the owner of the land
redemption bond shall be made to the
address recorded in the original register of the land redemption bond. Provided, That in
the
case where the owner of the land redemption bond notified another address to the
issuer of the land redemption bond separately,
the notice shall be made to such address.
Article 30 (Direct Use of Land)
(1) The project developer shall, under the provisions the main sentence of Article 16 (1)
of the Act, directly use the land to be
used for its main purpose by each type of the
enterprise city for at least the minimum percentage which is prescribed by each of
the
following subparagraphs. In this case, for the land to be developed for the direct use
of the public institutions which are
to be relocated to a local area, by any person falling
under each of the subparagraphs of Article 4 (1) of the Act, upon being designated
as a
joint project developer, such land may be calculated as land to be directly used by the
project developer within the scope
of 50 percent of the percentage for each type of
enterprise city in the following subparagraphs:
1. Industry/trade type enterprise city: 30 percent
2. Knowledge-based type enterprise city: 20 percent
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3. Tourism/leisure type enterprise city: 50 percent
4. Renovation cluster type enterprise city: 30 percent
(2) The percentage of direct use under the provisions of the proviso of Article
16 (1) of
the Act shall follow the classification of each of the following subparagraphs.
Provided, That in the case of subparagraph
2, it is limited to the case where the
deliberation of the Enterprise City Committee is completed:
1. Any person falling under subparagraphs 2 through 4 of Article 48 (2) of the Act is
alternatively designated as the project developer
under the provisions of same Article:
Exempted
2. In the case of developing a renovation cluster type enterprise city: More than or equal
to 20 percent
Article 31 (Installation Scope of Infrastructures)
The scope of installation for each kind of infrastructure under the provisions
of Article 19
(2) of the Act shall be under any of the following subparagraphs.
1. Roads: roads which meet all the requirements of the following items:
(a) Urban planning road under the National Land Planning
and Utilization Act or road
designated as road area by the Road Act before the designation of the development
area.
(b) National roads or local roads under the Road Act which shall be installed by the local
governments or State-assisted local roads.
2. Water supply and sewerage facilities: water supply and sewerage facilities which
underpass the water supply and sewerage facilities
in the development area without
connecting to such facilities
3. Electric Facilities: electric facility from the mainstay outside the development area to
the border line of the individual lots
adjoining the urban planning roads of not
narrower than 6 meter width under land utilization plan in the development area
(hereinafter
referred to as the "individual lots"). Provided, That in the case where the
main electric facilities in the development area are
installed under the ground by the
request of the project developer, the electricity provider and the person who requests
20
the installation of such electric facilities under the ground bear the installation costs in
the ratio of 50 to 50.
4. Gas supply facilities: gas supply facility from the mainstay of the gas supplying
facilities outside the development area to the
border line of the individual lots.
Provided, That in the case where the governor room is installed within the individual
lot in
the development area to supply gas for cooking or individual heating purpose
(excluding central heating purpose), the installation
cost for the gas supplying facilities
to the governor room shall be borne.
5. Regional heating facilities: heat transport pipe from the main stem of the heat transport
pipe outside the development area to
the shutting valve of the individual machine room
of the individual lots within the development area
6. Communication facilities: pipe road facility from the mainstay facilities outside the
development area to the border line of the
individual lots and cable facilities from the
mainstay facility outside the development area to the first terminal of the individual
lots within the development area
Article 32 (Subsequent Adjustment of Cost Bearing)
"Criteria prescribed by Presidential Decree" in the other part than each of the
subparagraphs of Article 20 (2) of the Act refers to the case where there occurs not less
than 20 percent of difference compared
to the development gains originally estimated
under the provisions f Article 8 of the Act. In this case, the portion of the land
price
increase caused by the average rate of change in land price under the provisions of
Article 11 of the Act, which is investigated
by the Minister, from the date of approval for
the development area to the completion date of the development project (referring
to the
average rate of change in land price in the City/Gun where the relevant enterprise city
belong), shall be excluded in the
calculation of the development gains.
Article 33 (Advance Payment)
(1) Any project developer who intends to receive advance payment under the provisions
Article 21 of the Act shall obtain the approval
from the Minister after meeting the
requirements falling under each of the following subparagraphs upon the approval of
the implementation
plan:
1. The project developer commenced the development project after securing not less than
50 percent of the ownership for the land
area of the development area.
2. The project developer secured the ownership of the land to supply and effaced the
mortgage settled on such land.
3. The rate of completion for the development project for the land to supply shall not be
lower than 10 percent.
4. The project developer shall obtain the confirmation from the head of City/Gun that the
installation of the business place and
relocation of the business are being executed
normally following the contents of the memorandum of agreement under the
provisions
of Article 12 (1) 5 of the Act.
5. The project developer shall submit to the Minister a certificate of guarantee, etc. which
contains the contents falling under
each of the following items (referring to the written
payment guarantee, securities, policy of guarantee insurance, certificate
of time deposit,
beneficiary certificates, etc. under the provisions of Article 37 (2) of the Enforcement
Decree of the Act on
Contracts to which the State is a Party, and the same shall apply
hereinafter) to secure the refund of the advance payment in case
the supply contract is
not performed. Provided, That in the case of item (b), when the project period is
extended, a certificate
of guarantee for the period covering both the original
guaranteeing or insurance period and the extended period shall be submitted.
(a) The amount of guarantee or insurance shall be not less than the sum of the advance
payment and agreed interest for the guarantee
or insurance period.
(b) The commencing date of the guarantee or insurance shall be prior to the date of
receipt of the advance
payment, and the end date shall not be earlier than one month
after the expected date of work completion.
(2) After supplying the land or have the facilities to be used in advance prior to the public
announcement of the work completion,
the project developer shall not provide such
land as mortgage.
(3) If the project developer does not perform according to the supply contract, or it is
deemed that the project developer is not
able to carry out the project due to the
bankruptcy, etc. of the project developer (including determination and authorization of
the court under the Resuscitation of Debtor and Bankruptcy Act), the Minister may use
the letter of guarantee for refunding the
advance payment prior to the work completion
of such development project.
Article 34 (Reduction, etc. of Charges)
(1) For the development project of enterprise city, the charges shall be reduced as follows
under the provisions of Article 25 (2)
of the Act:
1. Development charges under the provisions of Article 5 of the Restitution of
Development Gains Act: exempted
2. Farmland preservation charges under the provisions of Article 40 of the Farmland Act:
reduction under the provisions of Article
52 of the Enforcement Decree of the
Farmland Act
3. Substitute grassland development charges under the provisions of Article 23 of the
Grassland Act: reduction under the provisions
of Article 23 (4) of the Grassland Act
4. Substitute forest resources cultivation charges under the provisions of Article 19 of the
Management of Mountainous Districts
Act: reduction under the provisions of Article
23 of the Enforcement Decree of the Management of Mountainous Districts Act
5. Traffic-congestion charges under Article 18 of the Urban Traffic Improvement
Promotion Act: exempted
(2) In the case where the project developer occupies or uses the public waters to execute
the development project under the provisions
of Article 25 (3) of the Act, the
occupation or use fee under the provisions of the Public Waters Management Act shall
be exempted.
Article 35 (Rent of National and Public Properties)
(1) The annual rentals for the national or public properties under the provisions
of Article
26 (3) of the Act shall be the product of the price for the national or public properties
multiplied by the charge rate
not lower than ten thousandths.
(2) The rate of reduction of the rentals for the national properties under the provisions of
Article
26 (3) of the Act shall be determined by the management agency of such
national properties (including the delegated or entrusted
persons under Article 21 of
the State Properties Act and Article 32 of the same Act, and the same applies
hereinafter) within the
scope of twenty hundredths.
23
(3) Any project developer or occupant enterprise who intends to be granted for the
reduction of the rentals for the national properties
under the provisions of Article 26
(3) of the Act shall file an application for the reduction to the management agency of
such
national properties.
(4) Any project developer or occupant enterprise who intends to be granted for the
reduction of the rentals for the public properties
under the provisions of Article 26 (3)
of the Act shall file an application for the reduction to the head of the relevant local
government.
(5) Detailed matters such as businesses subject to reduction of rentals for public
properties, rate of reduction of rentals, etc.
under the provisions of Article 26 (3) shall
be determined by Ordinance of the relevant local government upon consideration of
the creation of the employment, impacts on the vitalization of the enterprise city and
the regional economy, etc.
Article 36 (Payment Terms for the Selling Price of the National and Public Properties)
The State or the local governments may allow
the installment payment by year of equal
amount for the selling price of national properties or public properties within the range
of
not less than 10 years to not more than 20 years under the Article 27 (4) of the Act.
Article 37 (Special Cases concerning the
Installation and Utilization of Sports Facilities
Act)
(1) "Minor matters prescribed by Presidential Decree" in the latter part of Article 29 (1)
of the Act shall be the matters falling
under each of the following subparagraphs:
1. Where any person who obtained the approval for the project plan is a juristic person,
the matters concerning the change of name
and address of the representative
(excluding the case of the succession of the approval for the business plan under the
provisions
of Article 30 (3) of the Installation and Utilization of Sports Facilities Act).
2. Matters concerning the change of firm's name
3. Matters concerning the change in installation of facilities within the scope of any one
of the following items without changing
the site area and the boundary for the project
plan which is approved:
24
(a) In the case of the essential facilities under the provisions of Article 30 (2) of the
Installation and Utilization of Sports
Facilities Act: extension, rebuilding or
modification within 30 percent of the facilities for which the project plan is obtained
or
the size of the area for each registered facilities (referring to the total floor area in the
case of buildings)
(b) In the case of other facilities than the essential facilities in item (a) : extension,
rebuilding, relocation, reconstruction
or modification of the facilities for which the
project plan is obtained or registered facilities
4. Matters concerning the change in the estimated number of persons for the invitation of
members and membership fees
(2) "Minor registered matters prescribed by Presidential Decree" in the latter part of
Article 29 (2) of the Act shall be the matters
falling under each of the following
subparagraphs:
1. Matters concerning the change of the athletic facility business operator due to the
succession of the athletic facility business
under the provisions of Article 30 of the
Installation and Utilization of Sports Facilities Act
2. Matters concerning the remodeling and repair within the range of not changing the site
area and the scale of the business facility
for the registered athletic facility business
3. Matters concerning the alteration of use during the close-down period of the skiing
ground business due to the change in seasons,
without altering the facilities of such
business
Article 38 (Requirements for Exclusive Casino Business for Foreigners)
(1) "Amount of not less than a certain scale prescribed by
Presidential Decree" in
subparagraph 1 of Article 30 of the Act refers to the case where the amount of not less
than 500 billion
won is to be invested in the tourism businesses as provided for in each
of the subparagraphs of Article 3 (1) of the Act, and the
amount of not less than 300
billion won has been already invested at the time of applying for the permission on
casino business.
(2) Facilities and machines needed for the casino business under the provisions of
subparagraph 3 of Article 30 of the Act shall
be installed in a hotel business facility
operated in a tourism and leisure type enterprise city (limited to a facility marked with
a highest rating, or a facility with the second highest rating, if there is no facility with
25
the highest rating in the enterprise city), or in a facility annexed to the facilities of an
international conference business.
Article 39 (Special Cases concerning Housing Supply)
(1) In the case of constructing the private housing to supply in the development
area, the
housing may be specially supplied to the persons falling under each of the following
subparagraphs under the provisions
of Article 31 (1) of the Act.
1. Employees of the occupant enterprises in the relevant development area
2. Any person falling under each of the following items, who is verified by the head of
City/Gun:
(a) Teachers or employees of the educational institutions established in the relevant
development area
(b) Employees of the national agencies, local governments, government-invested
institutions and research institutes in the relevant
development area
(2) Other housing supply than for paragraph (1) shall follow the provisions of Article 38
of the Housing Act
(3) "Speculative areas prescribed by Presidential Decree" in Article 31 (2) of the Act
shall be the areas falling under each of
the following subparagraphs:
1. Areas designated under the provisions of subparagraph 1 of Article 104 (2) of the
Income Tax Act;
2. Overheated speculation district under the provisions of Article 41 of the Housing Act
Article 40 (Special Cases concerning Restrictions
on Gross Amount of Investment)
(1) Under the provisions of Article 32 (2), the amount to be added to the total investment
amount
of the company subject to the limitations on total investment amount at the
time such company acquires stocks of a private enterprise
shall the product of the rest
of the acquisition cost multiplied by the ratio of acquisition costs at the time of
acquisition to
the special case investment amount, where the rest of the acquisition cost
means the rest of the acquisition costs of the stocks
which are not deemed as the stocks
26
of another domestic company under the provisions of Article 32 (1) of the Act
(hereinafter referred to as the "special case investment
amount") subtracted by the
product of the investment achievements in the infrastructures multiplied by the
percentage of investment
into the private enterprise by the company subject to the
limitations on total investment amount.
(2) "Data prescribed by Presidential Decree" in Article 32 (3) of the Act means the data
falling under each of the following subparagraphs:
1. Last year's investment achievements in the infrastructures and documentary evidence
2. Planned investment amount in the infrastructures for last year based on the investment
plan in the infrastructures
3. The cumulative sum of investment achievements in the infrastructures by the end of
last year
Article 41 (Necessary Documents for Changing the Purpose of Reclamation)
(1) "Documents prescribed by Presidential Decree" in Article
33 (3) 2 shall be the
documents falling under each of the following subparagraphs. Provided, That the
documents under subparagraphs2
through 5 are limited to the case of changing the
purpose of reclamation after approval of work completion of the reclamation.
1. Location, size, purpose of the reclamation (classified to before and after changing) of
the reclamation land (including pre-designated
land to be reclaimed, and the same shall
apply hereinafter), and reasons for changing;
2. Documents attesting the ownership of the reclamation land;
3. Certified copies of cadastral register of the reclamation land and necessary drawing
documents;
4. Appraisal report on the reclamation land;
5. Documents to prove the taxes and the public utilities' charges and appraisal and
assessment fee under the provisions of subparagraphs
1 and 2 of Article 25 of
Enforcement Decree of Public Waters Reclamation Act;
6. Land utilization plan
27
(2) Necessary matters concerning the preparation of documents and method for
submission of the attached documents under the provisions
of subparagraph 1 of
paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Transport and
Maritime Affairs.
1. Where the improvement of educational environment for the high schools in the
development area is needed and the project developer
requests such designation
2. Where there are more than two high school in the development area and the
improvement of educational environment is needed
Article 43 (Incidental Business of Medical Corporations)
"Incidental businesses prescribed by Presidential Decree" in Article 37
(5) of the Act are
the incidental businesses falling under each of the following subparagraphs:
1. Public bath business under the provisions of subparagraph 3 of Article 2 (1) of the
Public Health Control Act
2. Establishment and operation of child welfare facility under the provisions of Article 14
(2) of the Child Welfare Act
3. Establishment and operation of residential welfare facilities for the aged under the
provisions of Article 33 (2) of the Welfare
of the Aged Act and medical welfare
facilities for the aged under the provisions of Article 35 (2) of the same Act
4. Establishment and operation of hot spring to be designated under the provisions of
Article 6 of the Hot Spring Act
5. Establishment and management of private cremation facility and private enshrinement
28
facility under the provisions of Article 15 (1) of the Funeral Services, etc. Act, and
operation of funeral home under the provisions
of Article 25 (1) of the same Act
6. Establishment and operation of attached parking lots under the provisions of Article 19
(1) of the Parking Lot Act
Article 44 (Composition and Operation of the Enterprise City)
(1) The heads of central administrative agencies who are the government
members of the
Committee under subparagraph 2 of Article 39 (3) of the Act shall be anyone falling
under each of the following
subparagraphs:
1. The Minister of Strategy and Finance
2. The Minister of Education, Science and Technology
3. The Minister of Public Administration and Security
4. The Minister of Culture, Sports and Tourism
5. The Minister for Food, Agriculture, Forestry and Fisheries
6. The Minister of Knowledge Economy
7. The Minister of Health and Welfare
8. The Minister of Environment
9. The Minister
10. The Chairman of Korea Fair Trade Commission
11. The Chairman of Financial Services Commission
(2) When it is deemed necessary, the Enterprise City Committee may request the
heads of
the administrative agencies concerned to submit the necessary data, and hear
explanations from knowledgeable persons in
the enterprise city.
(3) Do governor and the head of City/Gun may attend the Enterprise City Committee and
make speech on the relevant
enterprise city.
29
(4) Terms of membership for the other members than the chairperson or members falling
under each of paragraph (1) shall be 2 years.
(5) When deemed it necessary, the chairperson may convene the Committee.
(6) Any meeting of the Committee shall open with the attendance
of a majority of the
registered members, and pass a resolution with a majority vote of the present members.
(7) There shall be
an executive secretary in the Enterprise City Committee, and the
executive secretary shall be appointed by the Minister among the
government officials
of the Ministry of Land, Transport and Maritime Affairs.
(8) Other necessary matters than those prescribed by this Decree concerning the
operation of the Enterprise City committee shall
be determined upon the resolution of
the Enterprise City Committee.
Article 45 (Enterprise City Management Council)
(1) The Enterprise City Management Council under the provisions of Article 40 of the
Act (hereinafter referred to as the "Council")
consists of less than 20 members
including the chairperson and vice-chairperson.
(2) Other necessary matters than those prescribed by this Decree concerning the
composition, operation, etc. of Council shall be
determined by Ordinance of the
relevant City/Gun
Article 46 (Notice of Change in Public Works)
(1) When the fact of revocation of the prior project area under the provisions of Article
43 (3) of the Act is announced in the
official gazette or in the official report, the project
developer shall, under the provisions of paragraph (6) of the same Article,
notify such
change in public works to the repurchase right holders under Article 91 (1) of the Act
on the Acquisition of Land,
etc. for Public Works and Compensation Threfor
(hereinafter referred to as the "repurchase right holder" in this Article). Provided,
That when the repurchase right holder is unknown or the address, residence or place
for notice is unknown, the public announcement
under the provisions of paragraph (2)
may substitute for such notice.
30
(2) The public announcement under the provisions of the proviso in paragraph (1) shall
be made by sending the documents to be announced
to the head of City/Gun or head of
district office who is governing the relevant land area, and posting such documents on
the bulletin
board of the relevant City/Gun or Gu (including Gu which is not a self-
governing Gu) for 14 days.
Article 47 (Cooperatively Related Company)
"Cooperatively related company" in the former part of Article 45 (2) of the Act refers to
the company which is entrusted by the
enterprise which invested in the project developer
or in the capital of the project developer (hereinafter referred to as the "project
developer,
etc.") with the production, processing, repair, transportation or sales (hereinafter referred
to as the "production,
etc.") of goods, half-finished goods and raw materials (hereinafter
referred to as the "goods, etc."), and thereby provide services
needed in production of
goods by the enterprise which manufactures goods, etc. or by the project developer, and
has entered a contract
to move into the enterprise city.
Article 48 (Incidental Expenses related to Land Acquisition, etc.)
"Incidental expenses prescribed
by Presidential Decree" in Article 48 (8) of the Act refers
to the registration fee for the land acquisition and incidental expenses,
and drawing fee
and its incidental expenses.
Article 49 (Method and Procedures of Joint Exercise of Authority)
The authority to be exercised jointly by the Minister and the
Minister of Culture, Sports
and Tourism under the provisions of Article 50 of the Act shall follow the methods and
procedures falling
under each of the following subparagraphs:
1. Authority for Article 50 (1) 1 of the Act: the Minister of Culture, Sports and Tourism
receives the written proposal for the designation
of the development area and give
notice thereof to the Minister.
2. Authority for subparagraphs 2 and 4 of Article 50 (1) of the Act: the Minister of
Culture, Sports and Tourism carries out the
procedures under the provisions of Article
31
5 or Article 7 of the Act, and, upon the prior consultation with the Minister, designates
or revoke the designation of the development
area, and publicly announce thereof
jointly with the Minister.
3. Authority for subparagraphs 3, 13, 17 and 19 of Article 50 (1) of the Act: the Minister
of Culture, Sports and Tourism gives in
advance notice of the contents thereof, and
conducts them
4. Authority for subparagraph 5 of Article 50 (1) of the Act: the Minister of Culture,
Sports and Tourism has consultation on the
contents thereof with the Minister before
he conducts it
5. Authority for subparagraphs 6, 9 through 12, 15 and 16 of Article 50 (1) of the Act: the
Minister has in advance consultation
with the Minister and conducts them
6. Authority for subparagraph 7 of Article 50 (1) of the Act: the Minister of Culture,
Sports and Tourism executes the procedures
under the provisions of Article 11 and,
upon prior consultation with the Minister, approves the development plan and publicly
announces
jointly with the Minister.
7. Authority for subparagraph 8 of Article 50 (1) of the Act: the Minister of Culture,
Sports and Tourism executes the procedures
under the provisions of Article 12 and,
upon prior consultation with the Minister, approves the implementation plan, and
publicly
announces jointly with the Minister.
8. Authority for subparagraph 14 of Article 50 (1) of the Act: the Minister of Culture,
Sports and Tourism conducts it and gives
notice thereof to the Minister.
9. Authority for subparagraph 18 of Article 50 (1) of the Act: the Minister has in advance
consultation with the Minister of Culture,
sports and Tourism and conducts it
Article 50 (Imposition of Fine)
(1) When imposing fine under Article 56 (3) of the Act, the Minister or head of City/Gun
(hereinafter referred to as the "imposer")
shall investigate and verify such violation,
and notify to the person subject to the imposition of fine to pay for the fine by
clarifying the fact of violation, the amount of fine, etc. in the document.
(2) When intending to impose fine under the provisions
of paragraph (1), the imposer
shall give the person subject to imposition of fine an opportunity to express his opinion
orally
or by writing by setting the period of more than 10 days for the expression of his
32
opinion. In this case, if there is no expression of his opinion, it is deemed that he has
no opinion.
(3) When determining the amount of the fine, the imposer shall take the motive of such
violation, its result, etc. into consideration.
(4) The procedures for collecting fine shall be prescribed by Ordinance of Ministry of
Land, Transport and Maritime Affairs.
ADDENDA (Enforcement Decree of Special Act on Balanced Development of Nation)
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 3 (Amendment of Other Laws and Regulations)
(1) through (3) Omitted
(4) Part of the Enforcement Decree of the Special Act on Enterprise City Development
shall be amended as follows:
Subparagraph 1 of Article 8 (2) shall be as follows:
1. Area in the City/Gun which is selected and publicly announced as growth promotion
area under Article 2 (7) of the Special Act
on Balanced Development of Nation
From the proviso of Article 9 (4), "Committee for Balanced Development of Nation
(hereinafter
referred to as the "Special Act on Balanced Development of Nation")"
shall be turned into "Regional Development Committee"
33
(5) through (8) Omitted
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